...What is a better Monetary System: Bargaining or Money? So far, every monetary system ever implemented has been problematic. For instance, money, in its various forms, has been liable to manipulation. Metal money made from precious metals may be degraded by the issuer or filed, shaved, or chipped by individuals. Paper currency makes it more difficult for individuals to alter money but is more easily manipulated by the issuer, whether central authorities of individual banks. Bargaining and money are the two principal systems that markets utilize in buying or selling of both services and goods. Notwithstanding its weaknesses, money remains a better monetary system compared to bargaining. The imposition of limiting monetary policy in a disjointed wage bargaining context where workers have considerable bargaining rights can have perverse effects. Notwithstanding the tendency of liberal economists to point labor-market rigidities arising from government regulation and active trade unions as the source of unemployment, evidence exist that the nature of macroeconomic policy can also play a role. Macroeconomic policies are essential, especially in ensuring that wage-bargaining systems are able to deliver wage moderation that is favorable to low unemployment levels (OECD, 2011, p. 328). Centralized bargaining systems only work best under an accommodating monetary policy while bargaining systems organized at the industry level works efficiently under a non-accommodating policy. Therefore...
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...The preference of a monetary system is determined by considering several factors. Among them includes a wide range of production parameters which affect the rate at which goods and services are produced into the market. On the other hand, the preference is determined by the parameter affecting the customer behaviors in their purchasing (L. Meehan, 2015). Money and bargaining is the two main systems which the markets in the universe utilize in the process of buying and selling both goods and services. In my opinion, I prefer the money system where customers, retailers and producers have the fixed charge on a certain items or services. Time is one of the most precious commodities with limitations. It is fixed presuming that it can neither be added nor reduced from its original state (Hibler, 2015). Considering this factor, one can conclude that with the bargaining system, there is a lot of time wasting as the two parties tries to get into a consensus. This is as opposed to the money system where the buyer has a clear idea on the value of a service or good. For this reason, it is right to consider that instead of wasting the time resource, prices should be fixed to help customers and other buyers make their decisions (Hibler, 2015). In the case of a money system, customers and other buyers have the knowledge on the cost of a commodity. This is as opposed to bargaining system where the price varies with different conditions unknown to the buyer (Hibler, 2015). For this reason, it...
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...has a direct impact on both the educated individuals and the society at large. Generally speaking, people with better education have an upper hand in politics, social life and economics than those with basic schooling. However, it would be biased to assume that all the observable differences among people are brought by education. Many factors contribute to the difference in economic status and this includes family backgrounds and innate ability. In actual sense, these factors interact with the formal education environment and jointly help to develop preferences that determine people’s economic behavior. Even so, still there is evidence pointing out that, other factors neutral, better educated individuals normally have better jobs and higher income than those with average education. Further, they enjoy other benefits attributed to their schooling experience. Furthermore, it is factual that communities and countries with higher literacy levels have better living conditions than those with a less educated population. Therefore, this paper discusses the benefits of education as an attempt to substantiate the fact most of the observable difference in welfare are as a result of differences in education levels. To this end, the paper will have explored the reasons behind the need to be educated. The Impact of Education From an economic point of view, the time and money invested in educating an individual is in itself an investment, and like any other form of investment and under...
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...marks) 1. If inflation cannot occur without money, does this mean that changes in the money stock always causes changes in inflation and that controlling the money stock is the only way to control inflation? (6) This question needs to be simplified to: What is the connection between money supply and inflation? This is the situation of monetary validation. Assume the economy starts off at some stable position (E0) along the LRAS (at Y*), but there is a shock to the system such that Aggregate demand increases (rightward shift). The economy is now in an unstable position since an inflationary gap opens up. If market forces are left to operate: the inflationary gap implies an excess demand for factors of production and over time the wage rate will start to increase. This increases the cost of production so the SRAS curve shifts leftward. If market forces were left to operate over time the economy would move to a new equilibrium back at Y* but now at a higher price level. This new equilibrium would be stable. If the interest rate is fixed at some level there is then another force operating in the economy through the money market. The higher price level caused by the original outward shift of the AD curve implies a higher demand for money. So Qd (of money) shifts outwards. So long as the interest rate is fixed the monetary authorities must allow money supply to expand outwards to meet the new Qd of money. This new increase in money supply now causes an additional effect on the AS-AD...
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...three chapters that covers fundamental security valuation. This chapter introduces a topdown approach to fundamental security analysis. It covers the first two components: macroeconomic and industry analysis. The textbook begins with a global analysis, particularly with respect to how the performance of domestic firms is influenced by international economic performance. The chapter’s main focus however is on aspects of the U. S. economy that affect security returns, including fiscal and monetary policy. In addition, a brief presentation of the determinants of interest rates is covered. The chapter concludes with a discussion of industry analysis that includes classifications of industries, information sources, the industrial life cycle and a Porter framework that can be used to analyze industry competition. LEARNING OBJECTIVES Upon reading this chapter, you should have a basic understanding of some of the macroeconomic factors that affect security prices. That is, how fiscal and monetary policy affect interest rates and security prices. And some industry groups are more affected by macroeconomic factors than others and the characteristics of an industry that affect its competitiveness. CHAPTER OUTLINE The top-down approach to fundamental analysis begins with analyzing the economy. Expected economic performance will influence the choice of industry and the specific firm chosen as an investment. 1. The Global Economy A top-down analysis of a company begins with an examination...
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...3.1 Meaning of Money 1) Economists find no completely satisfactory way to measure money because A) money supply statistics are a state secret. B) the Federal Reserve does not employ or report different measures of the money supply. C) the "moneyness" or liquidity of an asset is a matter of degree. D) economists find disagreement interesting and refuse to agree for ideological reasons. Answer: C 2) To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt. A) wealth B) income C) money D) credit Answer: C 3) Currency includes A) paper money and coins. B) paper money, coins, and checks. C) paper money and checks. D) paper money, coins, checks, and savings deposits. Answer: A 4) The difference between money and income is that A) money is a flow and income is a stock. B) money is a stock and income is a flow. C) there is no differencemoney and income are both stocks. D) there is no differencemoney and income are both flows. Answer: B 5) It is true that A) income and wealth are both stocks. B) money and income are both stocks. C) income is a flow and wealth is a stock. D) money and wealth are both flows. Answer: C 6) An individual's annual salary is her A) money. B) income. C) wealth. D) liabilities. Answer: B 7) A person's house is part of her A) money. B) income. C) liabilities. D) wealth. Answer: D 8) Money is A) anything that is generally accepted in payment for goods and services or in the repayment...
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...Conducted By Yasmin - Nada and Mominah CONTENT Company Background 3 Industry Background 3 Strategic Analysis Phase 4 Analysis of Vision and Mission Statement 4 Vision 4 Mission Statement 4 External Analysis 5 Political Analysis 5 Economic Analysis 5 Fiscal policy 6 Monetary policy 6 Socio-cultural Analysis 6 Technological Analysis 7 Legal Analysis 7 Environmental Analysis 8 Industry Analysis: Five Forces Model 9 Internal Analysis 10 Value Chain Analysis 10 Appendix 15 Appendix 1.0 15 Appendix 1.1 16 Appendix 1.2 16 Appendix 1.3 17 Company Background As the major electricity provider serving almost 6 million customers in the Kingdom of Saudi Arabia, SEC is responsible for generation, transmission and distribution of electricity throughout the Kingdom. Wholly owned by shareholders, the SEC also sets the price of electricity sold to consumers and industry under rules set by the Saudi government based on the cost of production, distribution and services. On 05/04/2000, Saudi Electricity Company was established as a Saudi joint stock company. This stipulated the merger of all Saudi electricity companies in the Central, Eastern, Western and Southern Regions in addition to the ten small companies operating in the north of the Kingdom as well as all other electricity operations managed by The General Electricity Corporation, into a single joint stock company which is now known as Saudi Electricity Company. It is a Riyadh-based utility...
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...HRM 361 – Human Resource Management Final Exam Study Guide Chapter 11 – Compensation * What is total rewards * How is it different than traditional compensation * Why compensation philosophies vary by organization * Entitlement vs. performance philosophies Intrinsic vs. extrinsic rewards- Intrinsic rewards may include praise for completing a project or meeting performance objectives. Other psychological and social forms of compensation also reflect intrinsic type of rewards. Extrinsic rewards are tangible and take both monetary and nonmonetary forms. * Role of the HR unit in compensation * Internal equity * External equity * Meet/lag/lead strategies * FLSA * Exempt / nonexempt * 5 categories of exempt employees * Overtime * Training & travel time * Independent contractors * How to classify * Tax implications for employers / employees * Market pricing and pros/cons * Pay grades * Red/green circle employees * Pay adjustments (e.g. seniority) Chapter 12 – Incentives * Variable pay philosophy * How variable pay motivates employees * 3 categories of variable pay * Types of individual incentives * Gainsharing and how different from profit sharing * 3 types of commission pay plans and which is the most common * Examples of performance incentives * Why incentives should be tied to organizational goals * Pros/cons of bonuses vs. merit...
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...the Asset Demand for money is relatively elastic or flat, and that the Investment Demand Curve, is relatively inelastic or steep. Compare and contrast the effect of an increase in Money Supply upon the overall level of economic activity, using both the traditional transmission mechanism, and in the IS'LM model. Are there any major differences between these 2 models? Your answer should include all relevant diagrams. (20 marks IN RELATION TO THIS QUESTION, STUDENTS WOALD BE EXPECTED TO IDENTIFY AND EXPILIIN THE TRADITIONAL TRANSMISSION MECHANISM AND BRIEFLY EXPLAIN ITS CONSTITUENT PARTS; NAMELY MONEY MARKET, THE INVESTMENT DEMAND CARVE, AND FINALLY THE 45 DEGREE LINE PRODUCT MARKET MODEL. THEY WOALD BE EXPECTED TO BRIEFLY DESCRIBE THE EFFECT OF AN INCREASE IN MONEY SAPPLY WHEN THE ASSET DEMAND CURVE FOR MONEY IS RELATIVLY FLAT AND THE INVESTMENT DEMAND CT]RVE IS RELATIVELY STEEP. BETTER ANSWERS WOALD EXPLAIN WHAT THE LATTER 2 SLOPES INDCATE ABOUT THE PARTICULAR MARKETS. ANSWERING THIS QAESTION STUDENTS SHOALD IDENTIFY THE 2 PARTICULAR WEAKNESSES THAT CHARACTERISE THE TRADITIONAL TRANSMISSION MECHANISM. THE ARTE THE 2 PROBLEMS OF TryHEN INTERDEPENDENT VARIABLES AND IN TARN UNCERTAIN OR ANPREDICTABLE OR INDETERMINATE OUTCOMES OR RESALTS. OK. AS PART OF THEIR ANSWERS STADENTS SHOULD CERTAINLY MENTION THE FEEDBACK EFFECT OR THE RELATION BETWEEN CHANGES IN GDP OR Y, AND IN TARN CHANGES IN THE LEVEL OF TRANSACTIONS DEMAND FOR MONEY. FINALLY STUDENTS...
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...1.0 QUESTION 1 “PEST analysis is used by businesses around the world to devise a strategic approach to their activities”. Discuss this statement describing in detail the components of the said analysis. 1.1 INTRODUCTION Apart from a company’s internal resources there are several other factors that have a profound impact the performance of a company. The internal resources usually refers to the employees of the firm, contractors, sub-contractors, suppliers and so on whereas the external environment refers to the market, clients, stakeholders, etc. 1.2 PEST ANALYSIS According to Kotler (1998), PEST analysis is a useful strategic tool for understanding market growth on decline, business position and direction for operations. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research. In order to survive, be profitable and maintain their competitive advantage, organizations have to recognise and take advantages of the external environments as well as identifying and consider threats when developing strategies. One of the most commonly used analytical tools for assessing external factors in a business situation is PEST analysis. Pest is an acronym for Political, Economic, Social and Technological external factors. PEST analysis is beneficial when conducting research before beginning a new project or to help conduct market research. Also, PEST analysis helps to determine...
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...An organisation is a formal structure of relationships, responsibilities and authorities through which specific objectives are achieved. 'A work organisation is a social arrangement for the controlled performance of collective goals' (Buchanan and Huczynski, 2004). Purposes of different types of Organisation: Business organisations: To make a profit in a socially standard way. For example: Airlines, Fast food. Non-profit service organisations: They want to help to all of people without any profit. For example: NHS, Universities. Mutual-benefit organisations: Individuals join together to pursue their own self-interest. For example: Clubs, Trade Union. Commonweal organisations: They provide service to all members of a given population. For example: Fire Service, Police. Organisations by their intended purpose: Purpose Primary beneficiary Examples Business Owners Manufacturers, Fast-food, Restaurants Non profit services Clients Universities, Hospitals Mutual-benefit Members Unions, Clubs Commonweal Public at large Police, Public schools Classifying Organizations: Sector classification: Private enterprise organisations: A "private sector" organisation is one that is owned and controlled by private individuals, not the government and usually exists to make a profit for its shareholders. Public sector organisations: A "public sector" organisation is one that is controlled by...
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...Our economic system — the market economy or capitalism — is a system of consumers' supremacy. The customer is sovereign; he is, says a popular slogan, "always right." Businessmen are under the necessity of turning out what the consumers ask for and they must sell their wares at prices which the consumers can afford and are prepared to pay. A business operation is a manifest failure if the proceeds from the sales do not reimburse the businessman for all he has expended in producing the article. Thus the consumers in buying at a definite price determine also the height of the wages that are paid to all those engaged in the industries. 1. Wages Ultimately Paid By the Consumers It follows that an employer cannot pay more to an employee than the equivalent of the value the latter's work, according to the judgment of the buying public, adds to the merchandise. (This is the reason why the movie star gets much more than the charwoman.) If he were to pay more, he would not recover his outlays from the purchasers, he would suffer losses and would finally go bankrupt. In paying wages, the employer acts as a mandatory of the consumers as it were. It is upon the consumers that the incidence of the wage payments falls. As the immense majority of the goods produced are bought and consumed by people who are themselves receiving wages and salaries, it is obvious that in spending their earnings the wage earners and employees themselves are foremost in determining the height of the compensation...
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...Management Q1.a. What is the role of compensation and rewards in modern organization? What arethe advantages of a fair compensation system? Ans1a. Role of Compensation and Reward in Organization: Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Land, Labor, Capital and Organization are four major factors of production. Every factor contributes to the process of production/business. It expects return from the business process such as Rent is the return expected by the Landlord. similarly Capitalist expects Interest and Organizers i.e Entrepreneur expects profits. The labour expects wages from the process. It is evident that other factors are in-human factors and as such labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process. Advantages of Fair Compensation System: Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: 1. If an ideal compensation system is designed, it will have positive impact on the efficiency and results produced by workmen. 2. Such system will encourage the normal worker to perform better and achieve...
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...TABLE OF CONTENTS 1.0 Current reward system at Behlen2 2.1 Introduction of Non-Monitory Rewards 3 2.1.1 Recognition3 2.1.2 Benefits3 2.2 Enhancing Existing Monetary Benefits4 2.2.1 Employee4 2.1.2 Managers4 2.3 Introduction of New Monetary based reward schemes4 2.3.1 Suggestion Generation 4 2.3.2 Attendance Bonus5 2.4 Career growth / advancement based rewards5 3.0 Overview of Strategies to adopt if Agriculture Industry Collapses6 3.1 Increasing employee loyalty7 3.2 Business strategy and productivity improvements7 3.3 Restructuring the organization for better utilization of manpower7 3.4 Corporate communication 7 4.0 References8 1.0 “People leave when they don’t feel appreciated. That’s why we’ve made recognition a really high value. Our business is people-capability first; then you satisfy customers; then you make money.” ~ David Novak, CEO of YUM! Brands Employees at Behlen Company have the opportunity to benefit from an incredible reward scheme. This reward scheme has been primarily broken down in a fixed scheme and a variable scheme. Behlen Company Reward Scheme | Based Pay Approach – Employees at Behlen receive fixed rate of $8 per hour for every hour of work. | Group Pay for Performance – * Profit Sharing * Gain Sharing * Employee Stock Ownership Plan | * Profit Sharing: Behlen distributes 20% of the annual profit made by the company among the employees. This would allow employees to directly...
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...Bretton Woods Conference ........................... 15 5. Conclusion: Later changes and full analysis ............................. 19 6. Primary Sources and Bibliography ............................................ 22 7. Annexes: .................................................................................... 26 FEUC – Negociação Internacional – 2013-14 1 1. Introduction The United Nations Monetary and Financial Conference that occurred from the 1st of July to the 22nd in 1944 better known as the Bretton Woods conference gave origin to a ground-breaking system. It was the first time a fully negotiated monetary order came to existence which a new paradigm perspective on how to face economical international relations. This essay will help you understand why the Bretton Woods system happened, its historical context, why it worked throughout the time it did and the motive why it stopped functioning. Paramount to this essay will be its non-biased writing as hundreds of theories from Europeans and Americans exist trying to blame each other for the ending of this system. This is tremendously important because most current articles written about the possibility/impossibility of a well-functioning Bretton...
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